QUESTION 1

A set of activities engaged in to produce and deliver existing products and services to current customers is ...

	A.	a customer acquisition value stream.
	B.	a new product development value stream.
	C.	an order fulfillment value stream.
	D.	a customer development value stream.

1 points

QUESTION 2

Value stream management requires that value stream team members focus on ...

		optimizing the performance of their cell or department.
		their specific tasks and individual areas of responsibility.
		maximizing value stream profitability regardless of operational performance.
		flow through the value stream and overall value stream performance.

1 points

QUESTION 3

Compared to performance reporting under conventional management, performance reporting under value stream management ...

		is simplified because reporting is organized around a small number of units (value streams) of manageable size with clear lines of responsibility.
		relies more heavily on financial performance measures.
		relies more heavily on MRP and ERP systems.
		is more complicated because of the need to allocate costs from departments to value streams.

1 points

QUESTION 4

Modern Metalworks has a large, expensive heat-treating oven that serves four value streams. No single value stream uses more than 35 percent of the heat-treating capacity. In the short run, Modern Metalworks could best account for the oven and its cost by ...

		adding heat treatment to the value stream with the greatest sales.
		including the oven in the value stream that makes most use of it.
		apportioning the cost to value streams based on an annual estimate of usage.
		immediately selling the oven and either outsourcing heat treatment or buying right-sized equipment for each value stream. Otherwise they will not be able to use value stream management.

1 points

QUESTION 5

Which of the following is a factor to consider in identifying value streams?

	A.	The gross profit margins of the products and services.
	B.	The current location in the plant of the equipment used to produce the products or services.
	C.	The selling prices of the products or services.
	D.	The materials used in the products.

1 points

QUESTION 6

The purpose of __________ is to motivate efforts to continuously improve the performance of the entire value stream.

	A.	value stream performance measures
	B.	efficiency variances
	C.	price variances
	D.	cell performance measures

1 points

QUESTION 7

The sales per person measure for a value stream (for a week) should be computed by ...

	A.	dividing weekly value stream sales by the full-time-equivalent number of employees engaged in direct labor (direct labor hours / 40, for example).
	B.	dividing weekly value stream sales by the number of employees assigned to the value stream that week.
	C.	calculating the anticipated sales value of weekly production, then dividing that by the full-time-equivalent number of employees engaged in direct labor (direct labor hours / 40, for example).
	D.	calculating the anticipated sales value of weekly production, then dividing by the number of employees assigned to the value stream that week.

1 points

QUESTION 8

Dock-to-dock time measures ...

	A.	the rate of material flow through the value stream.
	B.	the rate of production required to satisfy average daily customer demand.
	C.	the speed at which products or services must be delivered to satisfy the delivery date requested by the customer.
	D.	the time it takes to make a product that is free of defects.

1 points

QUESTION 9

Clutter-Frees Media Storage value stream shipped 1,600 storage units to customers last week. At the end of the week they had sufficient wood on hand to produce 2,400 storage units. They had 800 storage units in work in process, and 3,200 finished units awaiting shipment. The Media Storage value stream works a five-day week. The dock-to-dock time for the Media Storage value stream is ...

	A.	10 days.
	B.	15 days.
	C.	20 days.
	D.	2.5 days.

1 points

QUESTION 10

Cool-Breezes Window Air Conditioner value stream shipped 4,200 units during a recent July week marked by a heat wave throughout most of the country. The Window Air Conditioner value stream purchased $288,000 worth of direct materials, had direct labor costs of $48,000, indirect labor costs of $68,000, and $76,000 of other value stream costs during the week. They produced 4,000 units. The average cost per unit for the Window Air Conditioner value stream is ...

	A.	$96.19.
	B.	$120.00.
	C.	$114.29.
	D.	$80.00.